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TD Canada Trust is raising its minimum balance

16K views 64 replies 26 participants last post by  Money172375 
#1 ·
Just came back from the bank in which I was advised by the teller that their minimum balance was going up to $5000 from the current $2000. So I closed one account that had no activity and now I have to think what to do with another one where I do use it for convenience as most of my banking is through PC Financial and Tangerine.

I just Googled but could not find anything about TD raising its minimum balance.

This is the kind thing that makes it more difficult for low income people to maintain any stability especially those who just lost their jobs during the pandemic. Sure I own TD stocks and collect dividends but that hardly compensates for what the banks do to their customers.

Is anybody still surprised why the wealth gap is still growing wider?
 
#4 ·
Not with TD but I've never had more than basic bank accounts and have managed to have all fees waived over the years, and the last 6 years partly due to being a senior. Scotia is raising their account fees and/or monthly minimums for basic accounts as of March 1 so will have to see IF I start to see certain charges, possibly $2.95 on one account, and if so, I will have to raise hell. I don't believe in account minimums, at least nothing over $1000.

P.S. I have been happy with 10-12 free debits/withdrawals per month and 2-5 free e-transfers. The numbers of free transactions are going up on basic accounts March 1. Don't really need all the extra free debits and e-transfers though.
 
#5 ·
I was recently told by TD that they were removing their "Value" Chequing account. If I recall correctly, this used to have a $1k or $2k minimum balance to waive the fees.

I changed my account into a "Every Day" chequing account which has a $10.95/mo fee that gets waived with $3000 minimum monthly balance
 
#11 ·
I have that account too. I now live 1000 miles from the branch where I opened it, and have not been there for decades. Even the TD branch near me says I should keep the Preferred account since it has such a low minimum.

I usually keep $5k minimum in my chequing anyway just for a float, thinking of increasing it to $10k so if I ever keel over and someone has to pay my bills they have something to work with.

One problem though is it has a $0.50 fee for e-Transfers which I see as becoming a more common way to make transfers and pay bills in the future. Newer accounts have free e-Transfers.
 
#16 ·
This is the kind thing that makes it more difficult for low income people to maintain any stability especially those who just lost their jobs during the pandemic. Sure I own TD stocks and collect dividends but that hardly compensates for what the banks do to their customers.

Is anybody still surprised why the wealth gap is still growing wider?
I'm kind of mixed on this. The key thing is to have enough affordable options for people and there seems to be so that people can vote with their cash & feet.
I started out at RY decades ago and moved most of my banking to a Vancity credit union because of their fees. Eventually, Vancity didn't have all the services/parameters I was looking for so I moved most of my banking to TD but now I'm able and wanting to maintain a minimum balance as a float and can avoid the fees. Obviously moving financial institutions can be a pain in the rear though.
 
#20 ·
I found VanCity to be pretty good sports, dropping the $7 monthly fee when I reached age 55.

I have had an account with Bank of America in the U.S. for 25 years. No deal for seniors. It used to be required to keep a balance of USD1,000 to incur no fees. Now it's maintain $1,500 or pay $9.95 a month. I suppose there must be U.S. banks that offer better deals. I think BofA is poorly regarded by most, but inertia sets in after 25 years and, when I need to deal with them on anything, they make it easy, even though I am no longer a resident. As well, I usually have a lot more in the account than $1,500 in any event, since I let it sit there until the exchange looks favourable. But it used to annoy me when I lived there and had a mortgage to pay. If I went under the minimum balance for 10 minutes at any point in the month, I'd get nailed with the service charge, which I think was about half of what it is now.
 
#18 ·
My post to PWM was merely to point out there is a cost. I don't care though. I carry various amounts of cash in chequing accounts at any given time. Usually top up at the beginning of the month to cover expenses for the month. The day I have to worry about interest 'leakage' of small amounts is the day someone needs to take me out to the back forty and dispose of me. 😁
 
#22 ·
This is the kind thing that makes it more difficult for low income people to maintain any stability especially those who just lost their jobs during the pandemic.
Often when I suggest to people to just ditch their Big Bank and go to online only, I'm told they need the benefits of:

1. Being able to get bank drafts at a branch
2. Getting high rewards credit cards with the annual fee waved
3. Getting a safety deposit box

These don't seem to be benefits that a low income person needs. So why don't they just pack up and go to a bank that serves them better?
 
#27 ·
Grandfathered into the CIBC plus 55 no fee cheque accounts. They just stopped charging for interac money transfers. The only fee we pay them now is for a safety deposit box. We also have a 60 plus account at Scotiabank. Balance at CIBC is usually less than $500, any more we move to their crummy on line savings account that pays the princely sum of .5 percent.
 
#31 ·
I am with TD and for me the min balance of 5k has been in place since 2015 i believe. But since I have met the 5k min I do not have any monthly account fee. I dont have a monthly fee for my TD visa infinite either. Also, I got 100 cheques for free because of the money in my account. I had a lot more than 5k during these years so maybe that brought more benefits. Now I am more into investing and also saving up money for a condo/house so that is why I have a bunch of money in the bank.

As far as the commend goes about people with low income getting screwed over I am not sure what to say. I am sure that it is mostly about banks wanting to maintain their margins and passing the cost onto their users.
 
#35 ·
Good news. I wrote to TD using through my online bank account secure messages service.

"In regards to the monthly minimum balance for your TD Preferred Chequing account, I'm able to let you know that some account changes have been considered; however, these discussions have been paused for the time being. Rest assured, the bank will notify you in advance of any such changes to your account profile."

I certainly can top up my balance to meet the $5000 but for those low income people who can't, they'll be forced to close it and look of another bank. Either that or pay services charges that puts them in deeper financial stress.

Eventhough this just postpones what is the inevitable, there will come a time during my retirement that I just can't afford to have dead money sitting around just to service bank accounts I may no longer use.
 
#38 ·
To me, most of the things at TD are want to have, rather than need to have. For example, I like being able to go in and get US money (i've even got change on occasion) and the fact that there are a lot of bank machines, but I don't need it. I have tangerine too and i feel it would suit most people. The credit card is really quite good for a free card and you can even have a US bank account.
 
#39 ·
FU Canada Trust!

I have a Preferred Chequing account too. I opened it in 1983. And they keep changing the terms, trying to get you to abandon it.

On July 1 2021 the minimum is going up from $2000 a month to $5000 a month! That makes it without a doubt the WORST account to possibly hold with any bank anywhere.

I mean, why don't they just close it on us? Why keep changing the term until is it impossible to have?

Bastrds!
 
#42 ·
Honestly, you should just ignore all chequing accounts except the all-inclusive banking plan. It's the only one that doesn't have built-in rip-offs. You just need to keep the $5000 minimum balance to wave all fees. This is easy to justify if you consider that money as part of your emergency fund.
 
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